View Spring 2022 issue

Spring 2022

Assess the carbon intensity of your operations today and determine how the existing and new fuel standards could impact your operations and profitability.

Fuel standards and carbon intensity to drive profitability

March 31, 2022

Time for a carbon-intensity check-up?

For fuel and electricity producers, evolving fuel standards soon may lead to changes in your formula for success. At the U.S. federal level, standards for biofuel blending volumes—specified by the second-generation U.S. Federal Renewable Fuel Standard (RFS)—are due for a transition after 2022.

The range of potential outcomes include:

No change: EPA sets future renewable-fuels targets
A third generation of the RFS: Congress sets future targets
A national Low Carbon Fuel Standard
RFS is repealed and not replaced

Driving renewable fuel investments

California introduced its LCFS in 2009, spurring significant investments in renewable fuel production and a net decrease in the carbon intensity of fuels used in the state. In addition, Oregon and Washington each have a CFS, and several other states, such as Minnesota, are evaluating new standards. British Columbia has an LCFS, and final regulations for a Canadian Clean Fuel Standard are targeted to be published this spring.

For affected businesses, it may be helpful to assess the carbon intensity of your operations today and determine how the existing and new fuel standards could impact your operations and profitability. To start, feasibility studies can identify which investments will pay off the most in reducing carbon intensity across the value chain for your operations. Barr routinely assists clients with these early, exploratory steps, as well as with later stages, such as design and permitting. Contact us to learn more.

About the author

Chandler Taylor is a vice president and senior environmental consultant with more than three decades of experience. In his role, Chandler manages and conducts projects involving Phase I environmental site assessments, remedial investigations and cleanups, environmental compliance projects and audits, environmental management systems, and environmental data management.